sTOKEN Functionality

sTokens are a unique innovation by Spore Labs, designed to make high-value NFTs more accessible through fractional ownership. These tokens represent fractionalized versions of NFTs, initially locked on the Ethereum network and then bridged to the Base network.

sTOKENS: How They Work

sTOKENS are built on the innovative ERC-741 standard that combines ERC20 and ERC721 functionalities to enable fractionalized ownership of NFTs.

Minting Process:

When a user locks an NFT (ERC721) in the contract on Ethereum, an equivalent ERC741 token is minted on base for the user, representing the ownership of the original NFT.

Linked Tokens:

The ERC741 contract operates as if there are an intrinsically linked ERC20 and ERC721 token that represent the original NFT. If you sell the NFT, the ERC20 token is transferred along with it. Conversely, if you sell the ERC20 token, the linked NFT is also transferred.

Fractional Sales:

If a user sells a fraction of the ERC20 token, the linked ERC721 NFT is transferred to address(0) and becomes "broken". The NFT is then available to be claimed by anyone who can construct a full ERC20 token, ensuring the integrity of fractionalized ownership.

Burning Process:

When a user burns the linked ERC20 and ERC721 token on Base via our contract, the original NFT will be released to them on Ethereum.